Platinum (ASX:PTM) Sees $243M April Outflows, Warns of Bigger Hit in May Amid Institutional Exit and ASX200 Shake-Up

May 06, 2025 11:17 AM AEST | By Team Kalkine Media

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Platinum (ASX:PTM) Sees $243M April Outflows, Warns of Bigger Hit in May Amid Institutional Exit and ASX200 Shake-Up — Image source: shutterstock

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Highlights

Platinum (PTM) reports $243M in April outflows

May outlook weakens due to $958M mandate termination

Strategic cost cuts planned to offset revenue loss

Platinum Asset Management (ASX:PTM) has flagged continued headwinds as it reported net fund outflows of $243 million in April, and signaled a more significant impact on its operations in May. The April figures mark a decline in investor sentiment, leading to a reduction in total funds under management (FUM) from $10.3 billion at the end of March to $9.6 billion by April 30.

The downturn in April was primarily driven by withdrawals from Platinum Trust Funds, which accounted for the bulk of the outflows. However, the company has also received notice of the termination of a large institutional mandate worth approximately $958 million, which is expected to further impact FUM in May.

While this significant client exit presents a near-term challenge, the company indicated it will implement cost-saving measures ahead of schedule. These measures are now expected to be realized in FY26 and are aimed at offsetting the anticipated loss in revenue tied to the institutional account departure.

The update comes shortly after investment firm L1 Capital revealed its growing interest in Platinum (ASX:PTM), having secured a substantial stake and initiating discussions around a potential merger. The fund manager's financial strain became more apparent in February when it posted a 55% fall in first-half net profit, highlighting a pattern of consistent fund outflows in recent months.

Shares of Platinum dipped by 1.1% to 66 cents in early ASX trading following the announcement. The company’s stock performance is being closely watched, especially by those monitoring movements within the broader ASX200, where fund managers like Platinum play an influential role.

With ongoing uncertainty and changes in investor sentiment, the developments at Platinum may serve as a key example for those following trends in ASX dividend stocks, especially within the asset management segment. While the institutional shift could present a long-term opportunity for strategic restructuring, short-term volatility remains a focal point for market watchers.

As the firm navigates these shifts, stakeholders will be looking to upcoming updates for signs of stabilization and strategic direction, particularly in light of potential corporate restructuring and future performance within the evolving ASX200 landscape.

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